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Shares of this decor solutions provider jumped around 4 percent after the shareholders of the company approved the buyback of equity shares. The shares have delivered more than 50 percent returns to shareholders. 

With a market capitalization of Rs. 3,059 crores, the shares of Somany Ceramics Ltd started Wednesday’s trading session on a higher note at Rs. 703 compared to its previous close at Rs. 695.85. The shares hit a high of Rs. 725.40, gaining around 4 percent and closed the day at Rs. 722 apiece. 

On 26 October 2023, the board of directors of Somany Ceramics Limited, considered and approved the proposal for buyback for which the shareholders on 5 December 2023, passed a special resolution approving the proposal to buy back 14,70,588 fully paid-up equity shares of the Company at the face value of Rs. 2. 

The price at which the equity shares will be bought back is Rs. 850 per share, it represents a premium of 18 percent from its closing price of Rs. 722 and it is payable in cash, for an aggregate amount not exceeding Rs. 125 Crores. 

The Buyback Offer Size represents 15.18 percent of the aggregate of the Company’s fully paid-up equity capital and 15.17 percent of the free reserves as per the latest standalone and consolidated audited financial statements of the Company respectively. 

Coming onto the financial statements of the company, the revenue increased by 12 from Rs. 587 crores in the June quarter to Rs. 655 crores during the September quarter. In addition, the net profits magnified by 130 percent from Rs. 13 crores to Rs. 30 crores during the same timeframe. 

The company is investing in expanding capacity in sanitary ware and bath fittings. Furthermore, the company expects to maintain current margins and improve them if volume increases. 

Headquartered in Kolkata, Somany Ceramics Ltd was incorporated in 1968. The company is engaged in manufacturing and trading complete decor solutions, its products include ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, sanitary ware, bath fittings and allied products. 

Written By Vaibhav Patil

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